Buy Lodha Developers; target of Rs 1388: ICICI Securities

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Lodha Developers has a strong launch pipeline for the remainder of FY27, with a GDV of INR 191bn, which is expected to drive sales bookings.
  • The company is focusing on generating higher free cash flows through limited land-spend and selective business development activities.
  • Lodha Developers is also growing its annuity income, with a target to increase it 10x by FY32, and is monetising its data centre land at Palava.
  • The company plans to build a 1GW powered shell (BTS), largely self-funded from land sales in DC Park, to enhance its recurring income stream.

Thesis Validation Checklist

  • Investors should watch for the successful execution of the launch pipeline and the resulting sales bookings growth.
  • The company's ability to generate higher free cash flows and reduce debt will be crucial.
  • Progress in growing annuity income and monetising data centre land will be key signals.
  • Any potential slowdown in the Mumbai market demand or approval delays could pose risks to the investment thesis.